Dear Sir ,
We are manufacturing of crane and also registered under Rule 9 of Central Excise Rule, 2002 Similarly we are registered under Service Tax Rules vide under Section 69 of the Finance Act, 1994. As per new service tax Rules effected on 01.07.2012 all services are covered on negative list & other than negative list of services. As on date our regular services are as follows:-
1.Goods Transport by Road(Reverse charge mechanism)
2.Erection, Commissioning & Installation
3.Consulting Engineer
4.Renting of Immovalble property
5.Supply of Tangible Assets for use(i.e. Plant & Machinery)
6.Others means: Payment against Input services(reverse charge & Joint charge mechanism)
In this case our normal practice & as per my knowledge is that service tax liability paid through GR-7 challan(Cash) & credit on input services are used against clearance of finished goods liability. Now our question is that can Cenvat credit/service tax credit be utilized for payment of service Tax on above mentioned service tax liability. Our Internal auditor is advised to us for above services payment of service tax liability can utilized from service tax credit/Cenvat credit Account.
Kindly give your valuable suggestions for the above subject matter.
With Best Regards,
SNEHAL SHAH